Aetna Earnings Preview: Analysts Expect Falling Revenue, Rising EPS

Aetna (NYSE: AET) unveils its next round of earnings this Thursday, October 27, 2011. Get prepared with Benzinga's ultimate preview for Aetna's third quarter earnings.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.14/share and revenues of $8.31 billion. Aetna's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 84 cents/share on revenues of $8.46 billion. We'll have to wait for Thursday to see if Aetna falls in line with analyst expectations and reports an increase in EPS and a slight decline in revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of October 21, 2011, Aetna's current share price was $38.12. Shares are up 26.4% year to date. For a full 12 months, the return has risen by 23.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Aetna is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Aetna's peers.

• CIGNA (NYSE: CI): Hold with a $1.53 recent quarter EPS
• Centene (NYSE: CNC): Hold with a $0.64 recent quarter EPS
• Coventry Health Care (NYSE: CVH): Hold with a $0.83 recent quarter EPS
• Health Net (NYSE: HNT): Hold with a $0.76 recent quarter EPS

The medical-HMO company's industry has seen price/earnings growth of 0.9% during the current fiscal year.

Finally, a description of the company's main areas of operation: Aetna is a health insurance company. It provides its customers, ranging from individuals to employer groups to governmental units, with traditional and consumer-directed health care benefits products and related services, such as medical, pharmaceutical, dental, behavioral health, group life, and disability plans.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

• To see up-to-date news on Aetna, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here